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Created on March 20, 2026 By

CA Sonal Saboo

CMA Inter

Inter OMSM PN-9 Quiz 3

This quiz is based on the CMA Operations Management and Strategic Management paper.
Each question is multiple-choice with 4 options, and only 1 option is correct.
Attempt the quiz to test your understanding of CMA OMSM concepts.

1 / 25

Category: Operations Management and Strategic Management PN-9

One of the requirements of Aggregate Planning is:

a. Both output and sales should be expressed in a logical overall unit of measuring

b. Appropriate time period

c. List of all resources available

d. List of operations required.

2 / 25

Category: Operations Management and Strategic Management PN-9

In aggregate planning, one of the methods in modification of demand is:

a. Differential Pricing

b. Lay off of employees

c. Over time working

d. Sub-contracting.

3 / 25

Category: Operations Management and Strategic Management PN-9

In aggregate planning one of the methods used to modification of supply is:

a. Advertising and sales promotion

b. Development of complimentary products

c. Backlogging

d. Hiring and lay off of employees depending on the situation.

4 / 25

Category: Operations Management and Strategic Management PN-9

The act of going round the production shop to note down the progress of work and feedback the information is known as:

a. Follow up

b. Dispatching

c. Routing

d. Trip card

5 / 25

Category: Operations Management and Strategic Management PN-9

The following establishes time sequence of operations:

a. Routing

b. Sequencing

c. Scheduling

d. Dispatching

6 / 25

Category: Operations Management and Strategic Management PN-9

One of the product examples for Line Layout is :

a. Repair Workshop

b. Welding shop

c. Engineering College

d. Cement

7 / 25

Category: Operations Management and Strategic Management PN-9

The card which is prepared by the dispatching department to book the labour involved in each operation is

a. Labour card

b. Wage card

c. Credit card

d. Job card

8 / 25

Category: Operations Management and Strategic Management PN-9

Which one of the following is correct with respect to long range forecast?

a. It is used to determine budgetary control over expenses

b. It is used to determine dividend policy

c. It is used to plan for capacity adjustments

d. It is used to plan for material requirement

9 / 25

Category: Operations Management and Strategic Management PN-9

Which one of the following is not a characteristics of Aggregate Planning?

a. Both output and sales should be expressed in a logical overall unit of measuring

b. Acceptable forecast for the period covering the whole planning horizon

c. A method of identification and fixing the relevant costs associated with the plant.

d. Availability of alternatives for meeting the objective of the organization

10 / 25

Category: Operations Management and Strategic Management PN-9

Which one of the following is not an objective of MRP?

a. Inventory Reduction

b. Realistic delivery commitments

c. Reduction in the manufacturing and delivery lead times

d. Reasonable production schedule

11 / 25

Category: Operations Management and Strategic Management PN-9

In operation sequence if capacity of a facilty is lower than the capacities of other facilities in the sequence it is

a. Unutilised operation

b. Flexible operation

c. Rigid operation

d. Bootleneck operation

12 / 25

Category: Operations Management and Strategic Management PN-9

The four step systematic approach to plan for long term capacity decisions does not involve

a. Estimate future productivity requirement

b. Estimate future capacity requirements

c. Identify gaps by comparing requirements with available capacity

d. Develop alternative plans for reducing the gaps

13 / 25

Category: Operations Management and Strategic Management PN-9

Aggregate Resource Planning becomes a challenge when demand fluctuates over the planning horizon. Under this case which one of the following is correct?

a. Demand forecasts are converted to resource requirements

b. Producing at a constant rate and using inventory to absorb fluctuations in demand

c. Resources necessary to meet demand over the time horizon are acquired

d. Minor variations in demand are handled with overtime or under time

14 / 25

Category: Operations Management and Strategic Management PN-9

Which one of the following is the result of excess capacity?

a. Loss of customers

b. Restricts growth

c. Drain company’s resources

d. All the above

15 / 25

Category: Operations Management and Strategic Management PN-9

Capacity planning is a

a. Long term makeover decision that establishes a firm’s overall level of resources

b. Long term realignment decision that establishes a firm’s overall level of resources

c. Long term restructuring decision that establishes a firm’s overall level of resources

d. Long term strategic decision that establishes a firm’s overall level of resources

16 / 25

Category: Operations Management and Strategic Management PN-9

Which one of the following is not affected by Capacity decisions?

a. Product lead times

b. Customer Responsiveness

c. Operating Costs

d. Resource optimisation

17 / 25

Category: Operations Management and Strategic Management PN-9

Capacity planning procedure does not involve which one of the following?

a. Assess company situation and environment to analyse historical demand

b. Translate future predictions of demand into physical capacity requirements

c. Determine economic effects of alternative plans

d. Selecting a capacity alternative most suited to achieve strategic mission of the firm.

18 / 25

Category: Operations Management and Strategic Management PN-9

Long-term capacity plans are concerned with

a. Overtime budgets

b. Investments in new facilities

c. Work force size

d. Inventories

19 / 25

Category: Operations Management and Strategic Management PN-9

Capacity decisions often involve

a. Long term irrevocable commitment of resources

b. Short term irrevocable commitment of resources

c. Long term revocable commitment of resources

d. (b) & (c) above

20 / 25

Category: Operations Management and Strategic Management PN-9

Capacity decisions are strategic because

a. Capacity decisions affect financing costs

b. Capacity decisions can affect facility location

c. Capacity at appropriate level facilitates easier management of product life cycle

d. Capacity decisions can affect competitiveness

21 / 25

Category: Operations Management and Strategic Management PN-9

The capacity cushion is

a. The amount of installed capacity a process uses to handle sudden increase in demand

b. The amount of licensed capacity a process uses to handle sudden increase in demand

c. The amount of declared capacity a process uses to handle sudden increase in demand

d. The amount of reserve capacity a process uses to handle sudden increase in demand

22 / 25

Category: Operations Management and Strategic Management PN-9

Large capacity cushions are common in industries in which

a. Demand is constant

b. Customer service is not a priority

c. Customer service is not a priority

d. Competition is sluggish

23 / 25

Category: Operations Management and Strategic Management PN-9

Which one of the following is not a feature of expansionist strategy?

a. It involves large infrequent jumps in capacity

b. It minimizes the chance of sales lost to insufficient capacity

c. It stays ahead of demand

d. It lags behind demand

24 / 25

Category: Operations Management and Strategic Management PN-9

Which one of the following is a feature of wait and see strategy?

a. It facilitates a firm to compete on price;

b. It guards against inaccurate assumptions regarding competition

c. It might increase the firm’s market share

d. It results economies of scale

25 / 25

Category: Operations Management and Strategic Management PN-9

Which one of the following is not a feature of output measure of capacity?

a. It is applicable when the firm provides a relatively small number of standardized services and products

b. It is used mainly in case of high volume processes such as car manufacturers

c. It is generally used for low volume, flexible processes such as furniture maker

d. It is less applicable when the amount of customization and variety in the product mix increases

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Inter PN-9 OMSM Quiz 3

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